Even if you’re a super-conservative investor, if you own any stocks at all, then you’re still taking on more risk than you might by stuffing all your extra money under your mattress. If you’re a more aggressive investor, then you are more familiar with risk. We’re not taking on Vegas-caliber sorts of chances, but there are certainly some people dancing dangerously close to that line.
You don’t have to blindly accept risks and chalk it up to just being how the stock market works. You can do something to diminish your most significant risks, and you can do so without crimping your overall returns.
Here’s a plan of action for dealing with the three biggest risks all investors face sooner or later.